Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

PIE rules start date to align with KiwiSaver

PIE rules start date to align with KiwiSaver

Portfolio investment rules are changed to reflect changes in the KiwiSaver scheme

---------------------------------

Revenue Minister Peter Dunne has recommended deferring the application date of the proposed changes to the tax rules on portfolio investment entities from 1 April to 1 October 2007, to fit in with the new KiwiSaver start-up date announced today.

The tax changes, which are part of a bill currently before the Finance and Expenditure Committee, will apply to New Zealand-based savings vehicles - such as managed funds - that meet certain criteria. The new rules will remove a number of tax distortions that favour investing directly over investing through New Zealand managed funds.

"The Minister of Finance and I have written to the chairman of the Finance and Expenditure Committee to notify him that we have instructed officials to recommend to the committee an amendment to the bill that will delay the application date of the portfolio investment entity rules until 1 October 2007," Mr Dunne said.

"The original KiwiSaver start date was the driver for setting the start date of the portfolio investment entity rules, so it makes sense to align the two.

"The two initiatives - KiwiSaver and the portfolio investment entity rules - are intimately linked in that the new tax rules, though generally optional, will be compulsory for KiwiSaver default funds.

"Delaying the application date of the portfolio investment entity tax rules also gives savings providers more time to prepare for their implementation, which should deal with some of the timing concerns expressed by the industry.

"Under the new tax rules, savings vehicles that qualify as portfolio investment entities will not be taxed on realised gains made on shares in New Zealand and Australian companies.

"Portfolio investment entities will also pay tax on the investment income on the basis of investors' tax rates, capped at 33%. That removes an enormous obstacle to lower income people investing through managed funds - and participating in KiwiSaver," he said.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Principals' Federation:
End Of National Standards

Today the Minister of Education announced that the Government has stopped the controversial National Standards system of assessment and declared them an arbitrary measure which did not raise children's achievement as the previous Government intended.

"This is such a win for all the principals who never believed in national standards and who, for the past decade, have argued for what is morally right for our nation's young people and their learning," said Cormick. More>>

 

Public Good: People’s Report On Public Broadcasting And Media Presented

The People’s Commission on Public Broadcasting and Media, was crowdfunded and was informed by an extensive consultation, seeking the views of both those working in Media as well as gathering input both online and in person from ordinary Citizens. More>>

ALSO:

RBNZ To RNZB: PM's Press Conference

Prime Minister Jacinda Adern was joined by Minister of Finance Grant Robertson and Minister for Children Tracey Martin to announce the appointment of Adrian Orr as the new Governor of the Reserve Bank and the name change of the Ministry for Vulnerable Children to ‘Oranga Tamariki - Ministry for Children’. More>>

ALSO:

'Taming Globalised Capital': Why Is Labour Supporting Investment Rules In WTO?

‘Today, we learned the new government has added New Zealand’s name to a proposal designed to lead to foreign investment rules in the WTO at this week’s ministerial meeting in Argentina,’ said Auckland University Professor Jane Kelsey. More>>

ALSO:

Gordon Campbell: On The Politics Of Scaring Voters Back Into Line

Fear has always been a useful mobilising tool in politics… yet in 2017, bogeymen of all shapes and sizes seem to have fallen on hard times. For years, the National party had painted itself as being the only reliable defensive bastion against the terrifying prospect of a centre-left government… More>>

ALSO:

Gordon Campbell: On Drinking Water As A Failure Of Political Leadership

It is almost possible to feel sorry for the Health Ministry in their terrible, no good, very bad week... More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages